SBP-held forex reserves dip by nearly $239 million

WEB DESK: The latest data from the State Bank of Pakistan (SBP) revealed a notable decline in the country’s foreign exchange reserves during the week ending June 21, 2024.

According to the SBP’s report released on Thursday, the reserves held by the central bank dropped by $238.9 million, marking a decrease of 2.62 per cent week-on-week, settling at $8.9 billion.

The SBP attributed this decline primarily to external debt repayments. In a statement, the central bank clarified, “During the week, SBP reserves decreased by $239 million due to external debt repayments.”

Similarly, Pakistan’s total reserves, including those held by commercial banks, also witnessed a decline.

The overall reserves fell by $207.3 million, down 1.44 per cent from the previous week, amounting to $14.21 billion. However, commercial banks saw a marginal increase in their reserves, which rose by $31.6 million to $5.31 billion, marking a 0.60 per cent rise week-on-week.

Despite this recent decrease, the SBP-held reserves have shown a significant increase of $4.43 billion or 99.17 per cent in the current fiscal year. This substantial rise follows Pakistan’s successful negotiation of a $3 billion Stand-By Arrangement (SBA) with the International Monetary Fund (IMF) by the end of June last year.

The SBA not only bolstered the country’s financial position but also facilitated access to additional multilateral and bilateral funding.

Looking at the broader picture, the calendar year 2024 has seen an overall increase of $674.6 million or 8.21 per cent in Pakistan’s foreign exchange reserves, despite the recent weekly decline reported by the SBP.

This latest development underscores the ongoing fluctuations in Pakistan’s financial reserves amid efforts to manage external debt obligations and sustain economic stability.

Read next: Gold price surges by Rs400 per tola